EZTEC Reaches Guidance and Posts Record Net Income of R$243.7 Million

SAO PAULO, March 22, 2011 /PRNewswire/ -- EZTEC S.A. (BOVESPA: EZTC3; Bloomberg EZTC3:BZ) celebrates its 32nd anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the fourth quarter of 2010 (4Q10) and fiscal year 2010.

Highlights

• Net Revenue was R$156.2 million in 4Q10, up 26.6% on 4Q09; and R$636.4 million in 2010, 25.8% higher than in 2009.
• Gross Income in 4Q10 was R$76.2 million, up 68.8% in relation to 4Q09, for a Gross Margin of 48.8%. In 2010, Gross Income came to R$297.7 million, up 46.2% from 2009, while Gross Margin increased 6.5 p.p. to 46.8%.
• EBITDA in 4Q10 increased 55.2% from 4Q09 to R$52.6 million, for an EBITDA Margin of 33.7%. EBITDA in 2010 stood at R$226.5 million, 41.8% higher than in 2009, for an EBITDA Margin of 35.6%, representing an improvement of 4.0 p.p.
• In 4Q10, Net Income was R$62.8 million, up 81.5% on 4Q09, for a Net Margin of 40.2%. In 2010, Net Income was R$243.7 million, representing an earnings per share of R$1.701, a Net Margin of 38.3% and Annualized ROE of 26.7%.
• EZTEC maintained its financial solidity in 4Q10, ending the period with Cash, Cash Equivalents and Financial Investments of R$192.5 million. Excluding debt (which is exclusively composed of SFH financing), the Company's Net Cash was R$135.1 million, plus Performing Receivables from real estate projects of R$268.0 million. These receivables, which qualify for securitization, are adjusted by the IGP-M + 12% p.a.
• In 4Q10, three projects were launched: the middle-high end residential developments Royale Prestige in the Sao Paulo Metropolitan Area and Art'E in the city of Jundiai, in the countryside of Sao Paulo; and the middle end residential development Gran Village Vila Formosa in the city of Sao Paulo. The launches in the quarter totaled own PSV of R$254.1 million, bringing own PSV in the whole of the year to R$887.1 million, for growth of 75.4% from 2009. As a result, launch volume reached the high end of the Guidance range established for 2010.
• In 4Q10, EZTEC's share of Contracted Sales totaled R$202.2 million, up 103.3% from 4Q09. Contracted Sales in 2010 totaled R$748.0 million, for growth of 32.4% in relation to 2009. EZTEC always discloses its sales net of brokerage commissions and rescissions.
• On December 31, 2010, EZTEC's Land Bank represented R$3.8 billion in own PSV. The average cost of lot acquisitions, including the costs associated with expanding construction potential, is equivalent to 9.5% of PSV.

For further information contact:
EZTEC S.A. - Investor Relations
Phone: +55 (11) 5056-8313
E-mail: [email protected]
www.eztec.com.br/ir

SOURCE EZTEC S.A.